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Vikram
Oct 14, 2022
by Vikram

UNI Technical Analysis: Reversal At $5.7 Prolongs Sideways Trend

UNI Technical Analysis
The UNI technical analysis shows a bullish recovery rally challenging the opposing EMAs and highlights the breakout opportunity.

The UNI price action displays a bearish failure to break below the $5.7 support level resulting in a bullish reversal that challenges the 50-day EMA. Furthermore, the spike in the trading volume supports the bullish reversal increasing the likelihood of an uptrend continuation to the 200-day EMA. Rejection from the opposing EMAs limits the breakout possibility. 

Key Points:

  • The Uniswap price action shows a reversal rally of 6.7% in the last three days.  

  • The long-tail formation at $5.7 reflects a strong demand present at lower levels. 

  • The intraday trading volume in Uniswap is $216 Million.

    • TradingView Chart

    UNI Technical Analysis

    As warned in our previous analysis, the UNI price action fails to sustain the uptrend resulting in downfall to $5.7. The descent undermines the previously mentioned inverted head and shoulder pattern and nullifies the breakout rally.

    Nonetheless, the high demand at lower levels launched the Uniswap market price higher by 6.75%, with the lower price rejection at $5.7. Additionally, the boost in the intraday trading volume supports the three days streak of bullish candles in the daily chart.

    Considering the demand increases for Uniswap after the recent $165 million, the price trend might shortly give a bullish breakout. Joining Polychain Capital in the Series B funding round were a16z crypto, Paradigm, SV Angel, and Variant.

    If the buying pressure sustains, the Uniswap market price will exceed the psychological mark of $7 to reach the overhead resistance of 200-day EMA close to $8.  

    Conversely, the bullish failure to prolong the uptrend will result in a bearish trend retesting the $5.7 support level. 

    Technical Indicator

    The RSI slope displays a bullish spike in the nearly oversold zone to approach the halfway line reflecting an increase in the underlying bullishness. Furthermore, the declining trend in the bearish histograms helps the MACD and signal lines to regain the bullish alignment. 

    Therefore, the technical indicators highlight the increasing Uniswap market price due to high demand. As a result, the UNI technical analysis signals a buying opportunity at the current market price.

    Resistance levels- $8 and $10

    Support levels-  $6.75 and $5.7

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    UNI Technical Analysis: Reversal At $5.7 Prolongs Sideways Trend
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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